valuation on Karoon:-
2023 production will be 30,000/bbls/day.
It’s profitability at $100/bbl is:-
royalty 10% =. $10/bbl
production costs $15/bbl
other costs. $5/bbl
pre tax profit. US $70/bbl
this equates to pre tax profit of US$740m pa or A$1,060m or $1.92/sh. The company has no debt and US$200m cash on the balance sheet to cover CAPEX on the Bauna intervention and Patola expansion.
Let’s put a conservative 3x pre tax multiple on this and we get to $5.76/sh. If oil pushes up to $115-130/bbl we push over $7/sh.
IMO it’s super cheap here and at $2.7/sh, $3.7/sh or $4.70/sh. Once management executes on the expansion the stock will start to move up thru these prices.
valuation on Karoon:-2023 production will be...
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Last
$1.81 |
Change
0.005(0.28%) |
Mkt cap ! $1.450B | |||
| Open | High | Low | Value | Volume |
| $1.82 | $1.84 | $1.78 | $8.370M | 4.605M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 32319 | $1.81 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.82 | 28653 | 3 |
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| Last trade - 16.10pm 09/07/2024 (20 minute delay) ? |
| KAR (ASX) Chart |